COLOMBIA

Slower recovery amidst rising social and political risks

B2

MEDIUM RISK

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in July 2021.

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GDP USD 271.5bn (World ranking 40, World Bank 2020)
Population 50.8mn (World ranking 29, World Bank 2020)
Form of state Presidential republic
Head of state Iván Duque Márquez (President)
Next elections March 2022 Congress, June 2022 Presidential
  • Natural resource base: agricultural, energy and minerals
  • Strong medium-term growth
  • Pro-business environment
  • Fiscal sustainability principle included in the Constitution
  • Support from international financial institutions
  • Independent monetary authorities
  • Sensitive to commodity price fluctuations and the U.S. business cycle
  • Difficult security situation with long running domestic insurgency and drug trafficking
  • Rule of law and control of corruption remain areas of concern
  • High informality in the job market
  • Skewed income distribution

Trade structure by destination/origin

(% of total, annual 2020)

Exports Rank Imports
United States 30.2%
1
26.3% United States
China 15.5%
2
22.2% China
Ecuador 5.6%
3
7.3% Mexico
Panama 4.8%
4
6.3% Brazil
Brazil 4.2%
5
3.8% Germany

Trade structure by product

(% of total, annual 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 35.6%
1
8.3% Road vehicles
Coal, coke and briquettes 13.0%
2
7.4% Telecommunication and sound recording apparatus
Coffee, tea, cocoa, spices, and manufactures thereof 7.6%
3
5.3% Medicinal and pharmaceutical products
Gold, non-monetary (excluding gold ores and concentrates) 5.0%
4
5.2% Other industrial machinery and parts
Crude animal and vegetable materials, n.e.s. 4.5%
5
5.1% Petroleum, petroleum products and related materials
The payment behavior of domestic companies has been deteriorating, with DSO remaining high and late payments occurring frequently.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings

 

Procedural costs and delays are significant, so court proceedings should be avoided overall. On the other hand, the court system has too many requirements in order to accept security titles.

When it comes to insolvent debtors, collecting debt is a genuine challenge and, overall, negotiating payment during the pre-legal action phase remains the most efficient alternative.

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